Q2. Identify the main stakeholder groups involved in the takeover and using Exhibit 4.

9map their power and level of interest. Be careful to avoid suggesting that there is one right map for the given scenario. The greatvirtue of stakeholder mapping as a technique is that it forces out into the open a debate anddiscussion about the stance of different stakeholders. Encourage students to read section 4.4.1of the text and Illustration 4.4a for practical advice on how to undertake a stakeholder mapping.One suggested map placing might be as shown in the Table 2 below. Table 2 Level of interest Power Board of directors High HighThe Glazer family High HighShareholders United High Low/moderateManchester Education Committee High LowThe government Low High Q3. Using Exhibit 4.9 assess the power exercised by Malcolm Glazer. Ultimately and undeniably, Malcolm Glazer proved to be the most powerful of all stakeholders.Interestingly, he appears to be an external stakeholder early in the case study but as hisshareholding increases he becomes an internal stakeholder. His control of money as a strategicresource was the main source of his power as was possession of knowledge in acquiringunwilling companies. The power was indicated through his negotiating arrangements. Q4. Reflect on Exhibit 4.4 and explain how over time the organisations corporate socialresponsibility stance has shifted. This should produce a much heated debate!Remember that the exhibits depiction of stereotypes extremes is only meant to stimulatethinking (and the references to shareholders will not apply when the organisation is familyowned).The fear of many is that under control of the Glazer family, the organisation may soon becomelike the first stereotype looking for short-term returns at the expense of investment in the playingside, etc. Others would contend that the family are committed to the organisation for the long tomedium term because (a) it will take this long to recoup their original outlay and (b) they believein the long term potential of the organisation.Manchester United Directors were probably close to the second stereotype (longer-termshareholder interests) when the organisation was a listed company. There is however anargument that they also tended towards the third stereotype (multiple stakeholder obligations) incertain respects (see the reference in the case to shareholders, loyal supporters, customers andkey commercial partners).

Many stakeholders including supporter groups believe that their stance should be either multiplestakeholder obligations or the fourth stereotype (shaper of society) and that in previous strategiceras the club were nearer these extremes. Additional questions Q5. Do you feel that the various aspects of corporate governance are appropriate for afootball club? What changes in governance would you like to see? Many will feel that big business and a financially driven ethos are undermining the beautifulgame. Manchester United are undeniably both big and a business. Is football and big businessincompatible, or can they have the same ends? This question is designed to provoke a healthydebate on whether profit maximisation is an appropriate purpose for a football club. WhenManchester United was a listed company, it had legal obligations to its shareholders. If thismeant trading-up and disregarding the needs of many traditional supporters, then the directorswere at liberty to do so. It is likely that many students will (therefore) come to the view that a plcis not an appropriate form of governance for a football club. However, as the case indicates, thisseemed preferable to many including the previous board, the manager and supporters.Press the group to see if they are happy to live with the consequences of previous traditionalforms of ownership or other possibilities (e.g. a registered charity). Undoubtedly the playingsuccess of Manchester United of late has been built upon the financial muscle that allowedinvestment in facilities, ground expansion and a payroll and transfer fee kitty sufficient to attractand keep top players.(Capital for ground and other improvements was the big bonus of stock market flotation for many including United. Are they prepared to return to an era of the dangerous and uninvitingslum stadium, second-rate training facilities and strict wage controls dictating lower calibreplayers representing their club?)(In classes where there are students from continental European countries such as Spain,interesting insights may be obtained into the form of corporate structures applying to the giantteams of Barcelona and Real Madrid. Ask these students to elaborate. Key features includecommunity ownership, a disregard for debt due to understanding financial intuitions andelections for presidency. Would this work in the UK?) Q6. Refer to section 4.5 and decide what you feel were the key cultural characteristics of Manchester United in terms of values, beliefs and taken-for-granted assumptions: (a)pre-1990 and (b) today? What are the implications of these changes to current andfuture strategies? Get students to identify the key changes in values, beliefs and assumptions between 1990 andnow. Some of these should have emerged from the previous questions on ethical stance, butother issues should also have surfaced. For example: Values have clearly shifted towards a more commercial agenda.

Beliefs previously football was a game and Manchester United represented the region.Management may have been amateurish but did this matter? Today loyalty is ameaningless concept, as is representing a region: the game like most business isinternational. Consider the actions of Gardner, Gill, Ferguson and Kenyon. How far do theyillustrate loyalty or disloyalty to the club?

Assumptions get students to list assumptions in 1990 and whether they still hold. For example:

Professional football is played for the benefit of supporters. Profit is only a means to an end.

Television is not a substitute for the real-thing. Football should be owned and managed by those with football in their blood. A reasonable set of alternative assumptions for the early years of the new century couldreasonably be postured: Professional football is played because it is a core product. Profit is essential but reinvestment in players might give longer-term benefits. Television is an integral part of the game today offering sponsorship and brandrecognition potential. Football should be professionally managed. It does not matter who invests in the club or which players are employed by the club so long as it is successful.

Q7. How organisationally has Manchester United aligned itself to external environmentalfactors? Identify key opportunities commenting on how well placed United is tomaximise them and major threats and their significance to the owners.

Get students to develop a PESTEL analysis and in so doing identify key opportunities andthreats.

Table 3. PESTEL analysis (suggested, not prescriptive)

Political

Threat: a rejection of westernisation, big business and football by somecountries on religious and/or cultural groundsOpportunity: encouragements by some governments to bring businessand glamour to their country as a part response to popularist appealEconomic

The state of world economiesLevels of disposable income increasing: opportunitySocio-cultural

Levels of leisure time increasing in some parts: an opportunity?Television, media profile of football as the new rock n roll (positive) andManchester United are a market leader Some evidence of growing discontent with huge salaries and highmatch-day fees; also shareholders of United boycott proposals; thethreat of a backlashAttitudes to big profits, exploitation and fat cat salaries (negative)Attitudes to branded goods and a merging of fashion, sport and musicamong the young (all positive)Technological

Internet and hand-held technology, personal telephone, iPods potentialSubscription and pay per view expansion. All positive developments

Environmental Sourcing of mechanise raw material, production methods and packagingunder scrutiny: this may be an impedimentLegal Interventions by the Monopolies and Mergers Commission. EUemployment laws (e.g. Bosman implications), FA also FIFA/UEFAregulations, possible wage restrictions/anti- bung regulations allrepresent threats rather than opportunities Q8. Consider the role of football within the business. Does it matter whether Manchester United continue to win matches, whether they have a dip in form and are relegated,or indeed if they need to play football at all? The diversity of operation and the corporate pronouncements should allow students to interpretorganisational purpose. (Is Manchester United in the entertainment business for instance?)A lead in to this issue could be to ask if it matters now whether Manchester United continue towin matches, whether they have a dip in form and are relegated, or indeed if they need to playfootball at all.Developing businesses away from football could insulate the club from one or two seasons of decline. Indeed the brand is so strong that it could probably survive in some form as anorganisation merely branding merchandise.The organisation appears conscious that their core

product remains football, and that coreneeds to be invested in, and hence the high salaries and expensive youth policies and trainingfacilities. Football however can be a game of unpredictability (before Chelseas takeover by itspresent owner who could have predicted their playing success?).

CASE TEACHING NOTES Belief in ActionThe Salvation Army: A Global Not-for-ProfitOrganisation Alex Murdock 1. Introduction The Salvation Army is in almost every sense of the word a global Not-for-Profit organisation.The reach of the organisation in terms of countries (111) and languages (174) alone makes itremarkable. The organisation has a Christian mission located within a practical orientation based upon the delivery of needed services. 2. Position of the Case The case lends itself well to a stakeholder analysis since there is a great deal of diversity interms of geography and the range of services provided. Though the organisation has a religious basis, it endeavours to work in harmony with other faiths. This marks it out from many other faith-based organisations and clearly has implications for how it would regard other faiths (or indeed those of no faith at all) in stakeholder terms. It seeks to work positively withgovernments of the countries within which it works typically by being legally recognised.This makes the stakeholder relationships with host governments an interesting aspect of anycase study.The organisational structure of The Salvation Army is also worthy of case discussion. Thoughmaking the use of military analogy in terms of rank and uniform, the actual governance is moredecentralised with significant local autonomy. The question naturally arises as to whether thefaith which links those wearing the uniform is sufficient to overcome possible tendencies tofragment.The future strategic direction of The Salvation Army is also highly relevant as a subject for casediscussion. The Strategic Planning undertaken in the UK puts the UK ahead of the rest of TheSalvation Army. The questions it raises as to where The Salvation Army should focus itsactivities in the future are clearly challenging. They could be viewed as more appropriate in thedeveloped countries where stark poverty is less the issue than in Africa where the original ethosof focusing upon the relief of poverty could be argued to be very much central to the mission. 3. Learning Objectives The principal learning objective is for students to engage in a stakeholder analysis. This wouldinvolve at the basic level identifying the range of stakeholders, mapping them using atechnique such as Power/Interest.The case study can also be used to enable students working probably in groups to take the part of various stakeholders and argue the position of that stakeholder in a debate regarding TheSalvation Army.The Case Study can also be used to examine the question as to how the organisation movesstrategically and where it might go in the future. As a global not for profit run on a very tightcost basis, the organisational option, which might be used by the intergovernmental or privatesector, is not available. Transport costs and parsimony mean that the Commissioners physicallycome together infrequently. 4. Questions for Discussion

The following assignment questions can be used to stimulate students thinking:Case-related questions:1. Who were the stakeholders of The Salvation Army and how could they be mapped in termsof interest, expectation and power?2. What stakeholder issues might The Salvation Army encounter and how should anorganisation of this nature seek to resolve them?3. The growth of The Salvation Army gives it a global reach and a very strong presence inmany parts of the world. What might be the implications of the UK strategic planningexercise for the organisation at large?4. How should The Salvation Army organise itself in terms of governance and strategicvision? 5. Case Analysis When introducing the case study, lecturers will find it useful to use slides relating toStakeholder Analysis and Stakeholder Mapping. It may be helpful where the students background is not appreciative of the concept of religious-based organisations to locate TheSalvation Army in the context of faith-based organisation. (viz Roman Catholic Church,Methodist Church, Islamic relief organisations). Q1. Who were the stakeholders of The Salvation Army and how could they be mapped interms of interest, expectation and power? Here students should be encouraged to think carefully with a view to constructing a list of stakeholders. This could be assisted by a brainstorming approach. Typically thoughtful studentsshould be able to come up with well over twenty stakeholders. The importance of the mission of the organisation should not deflect students from appreciating that the organisationalenvironment is not necessarily homogeneous.The obvious initial stakeholders (not necessarily in order of importance!) include such entities as: The Salvation Army internal environment The General Commissioners and Territorial Commanders The High Council Uniformed officers (who could subdivide according to rank) The non-uniformed staff (who would subdivide into groups such as professionals,administrators and clerical staff).

 The active soldiers (i.e. the religious congregations) Retired officers The families of the uniformed officers and staff. The external environment Governments of the countries in which it operates. Social welfare, educational and health organisations, either offering similar services or using the services of The Salvation Army Funders for the Salvation Army Direct recipients of services offered Families of recipients Relatives seeking missing people International Aid Agencies Actual military organisation Disaster or disaster-related government organisations The Regulatory Environment (

viz The Charity Commission in England and Wales). Significant others (Including those who may be negative about the organisation) Other faith organisations of a Christian persuasion Other faith organisations of a different persuasion Potential recipients of services Providers and suppliers of alcohol 1 The Gambling Industry The Mapping of the Stakeholders can be carried out on the basis of Power and Interest as setout in Exploring Corporate Strategy . However students should be encouraged to think not onlyof the placing of stakeholders on a grid but also of the direction in which they are moving. Thegrowth of The Salvation Army in developing countries would be a factor that could be identifiedhere. The desire of The Salvation Army to work on a non-controversial basis with hostgovernments and other faiths also has stakeholder implications. Students should beencouraged to consider the forms of power available to each stakeholder.The Mapping should show that some key stakeholders have very high levels of interest yetapparently little power (Direct Recipients of Services). Other stakeholders such as theUniformed Officers and Territorial Commanders and the General would have high power andhigh interest. The Mapping exercise may usefully be focused upon the implications for stakeholders of the Strategic Review. Students may be encouraged to identify elements of theStrategic Review and plot the likely stakeholder reactions to them. How might the issue of top-down culture be received, for example? Q2. What stakeholder issues might The Salvation Army encounter and how should anorganisation of this nature seek to resolve them?

The religious and professional roles of The Salvation Army represent a very interestingopportunity for exploration of stakeholder issues. There are governance, power and statusissues here. The very low remuneration of senior uniformed officers sits alongside more market-based rates for professional staff. This would probably not be tenable in a non-faith-basedcontext.The Salvation Army has to seek funds and resources to carry out its activities. Students shouldbe encouraged to consider the stakeholder issues involved in this. The strong views ongambling and alcohol mean that funding associated with these sources is unacceptable.However, there does appear to be territorial differences regarding acceptable sources of fundingas shown by the McDonalds bequest. Q3. The growth of The Salvation Army gives it a global reach and a very strong presencein many parts of the world. What might be the implications of the UK strategicplanning exercise for the organisation at large? The global reach of the organisation together with the considerable diversity of its activitiesshould offer a fruitful source of both discussion and exploration. As a mission-basedorganisation, The Salvation Army is distinctly different from commercial organisations, whichmake product and market choices based upon conventional business criteria. The complexenvironment within which The Salvation Army regards itself as destined to operate createsmajor challenges in respect of governance and strategic coordination.The geographic and territorial basis of The Salvation Army could be explored and questioned asa global governance model. Students should discuss the advantages and disadvantages of thehigh level of local autonomy for the future direction of The Salvation Army. The local knowledgeand focus represents an advantage but the future need to mobilise and respond to major disasters may require more centralised direction and greater resources than are availablelocally.The post 9/11 situation is particularly interesting. The desire of The Salvation Army to workcooperatively with other faiths may be severely tested. The question of risk is likely to becomemore pertinent to some aspects of their activities. In the 19th and much of the 20th century, ahigh degree of personal risk was accepted as part of a missionary ethos. However, possibly adifferent view may obtain in The Salvation Army in the 21st Century. The role of The Salvation Army in disaster situations has become particularly significant post9/11 and Hurricane Katrina.Tutors working with students from different nationalities may find it useful to encourage them tosearch for information about The Salvation Army in their own language on the Internet. TheSalvation Army operates in so many different languages and quite possibly students will find itinteresting to compare and contrast how the focus might vary when searches in specificlanguages are made. In particular, the emphasis on what kind of services and activities arebeing undertaken may vary. However students should find that the faith message and corebelief systems are relatively stable across language and culture. Q4. How should The Salvation Army organise itself in terms of governance and strategicvision? A tutor can approach this in a number of ways. Using a stakeholder approach, the class couldbe divided into groups with a view to representing different stakeholder perspectives on thecurrent and possible different future ways that The Salvation Army might choose to go. Thefinancial, fund raising and membership challenges are all areas which could be explored.The use of ideology (or in this case beliefs) as a means of coordination (Henry Mintzberg) canusefully be discussed in terms of both its advantages and disadvantages in this case study.Further study of The Salvation Army through its web site and various other sources could beencouraged especially for more advanced students or for

students interested in not-for-profit or faith-based organisations. Strategic Review of The Salvation Army undertaken in the UK couldbe argued as possibly not wholly applicable globally due to the diversity of national and culturalsettings. However, students should appreciate the need for the organisation to maintain a senseof purpose in a changing world. This may require that the organisation review its form of governance and renew its strategic vision.In this respect, students could be encouraged to compare and contrast the situation of TheSalvation Army with other profit and not-for-profit organisations. Are there any examples whichmay be relevant? Students from a faith background may raise the difficulties faced byestablished churches and conventional religions who also confront ageing memberships and aneed to renew their vision. The challenge to the traditional Catholic faith in issues of birth controland divorce could be compared with the view of The Salvation Army on issues of gambling or alcohol. How might The Salvation Army cope with pressures to relax these strictures in order tobroaden its appeal? 6. Sources: Stakeholder Approaches In addition to Johnson and Scholess Exploring Corporate Strategy , there is also a very useful book by the same authors: Exploring Public Sector Strategy (2001) Pearson Education.This provides a chapter on stakeholder mapping (Chapter 9) which is invaluable.Another approach which looks at power and influence with alliances and collaboration (which isnot public sector orientated) is to be found in:(Chapter 7) Making Strategy Colin Eden & Fran Ackerman (1998), Sage, London. Johnson, Scholes and Whittington, Exploring Corporate Strategy , Eighth edition, Instructors Manual 221 Pearson Education Limited 2008 Useful English language web site references: The international web site for The Salvation Army:http://www1.salvationarmy.org/ihq/www_sa.nsf The USA Salvation Army Web site:http://www.salvationarmyusa.org/The UK web site for The Salvation Armyhttp://www.salvationarmy.org.uk/en/home.htmA web site for The Salvation Army Community and friendshttp://www.salvationist.org/A general search using the Guardian web site provides useful background information both onThe Salvation Army and on the Charity and Not-forprofit sector http://www.guardian.co.uk/The Institute of Fund raising (for students and tutors who wish to further explore the aspects of fundraising practice)http://www.institute-offundraising.org.uk/Third Sector Magazine A useful resource and information source for the not-forprofit sector http://www.thirdsector.co.uk/home/index.cfmThe Charity Commission: a UK regulatory

body for the Charity Sector http://www.charity-commission.gov.uk/The National Council for Voluntary Organisations a useful UK-based resource and informationsite:http://www.ncvovol.org.uk/asp/search/ncvo/main.aspx?siteID=1. CASE TEACHING NOTES Bayer Material Science:Responsible Operations in Thailand and China 1. Introduction This case study is based on the chemical industry and looks at the decisions of Germanys Bayer Material Science (BMS) when choosing appropriate measures of Corporate Social Responsibility as part of setting up and running a plant in China. The story is centred on Dr Dirk van Meirvenne, who managed the plant in Map Ta Phut,Thailand at the time of the case. The students take on the role of the manager, who reminiscesabout what happened in Thailand in terms of corporate social responsibility (CSR) and who isasked to give some advice on how to approach China in terms of CSR measures.The case will give the students a good feeling of what CSR measures can look like and whateffects they can have on the company and the community the company is involved in. Studentsmay find it helpful to do their own research and discuss their findings with classmates in order to develop an approach for the situation in China. 2. Learning Objectives This case was written for use in business schools and advanced employee training. It isespecially targeted for students in international business or corporate ethics courses . No prior experience with CSR is needed; however, some research during the case preparation is helpful.Students should learn the key issues of CSR in a global business context and specificcharacteristics within the Asian economies. Therefore, they have to understand BMS businessand Bayers CSR strategy, generally understand CSR and its different approaches and develop basic CSR dimensions as well as specific measures for the Chinese market, which fit to theoverall strategy and fulfil local stakeholders as well as BMS company goals.Furthermore students are encouraged to discuss general CSR aspects and underlying ethical principles and the extent to which these can be applied in a profit-oriented company. Theyshould understand the importance of social engagement of companies due to the increasedglobalisation and consequences of company activities.

3. Questions for Discussion 1. In your opinion, should companies engage in corporate social responsibility? How wouldyou describe Bayers CSR strategy?2. Applying the information on Bayer Material Science CSR activities

given in the case andbased on your own research, which dimensions of CSR and which categories would youidentify? What are BMS Thais activities in these areas?3. Taking into account your results of BMS CSR activities in Thailand, how would youevaluate the potential costs and benefits of the CSR engagement?4. Develop a CSR strategy for BMS in China based on your previous research. 4. Case Analysis Q1. In your opinion, should companies engage in corporate social responsibility? Howwould you describe Bayers CSR strategy? Companies can engage in social activities in various dimensions. To answer the question, it ishelpful to view CSR as a continuum ranging from exploitive companies to companies wheresocial responsibility is part of their mission, regardless of the financial aspect. Level 1 Illegal/irresponsible Level 2 Compliant Level 3 Fragmented Level 4 Strategic Level 5 Social advocacy No adherence tocommon legal or normal conventions,often illegal activities or explosion of workforceMinimum complianceto laws, few/no other activitiesBeyond merecompliance, these firmsengage in a limitednumber of activitiesCompanies engage insocial activitiesstrategically andsystematically toincrease performanceCompanies with the belief that they should be good, regardless of its financialconsequences Source: Johnson, H. (2003), p. 36. Companies on Level 1 will most probably face disputes with public interest groups or governmental bodies, spending money and time in court which affects the bottom line also.Such behaviour is therefore in most cases unprofitable, most companies therefore choose Level2 or higher as a necessary condition for existence. Level 3 companies act responsible beyondcompliance by engaging in fragmentary CSR activities, yet they lack the strategic aspect. Onlyon level 4, companies develop a CSR strategy and align their activities, always keeping thebottom-line effects in mind. This level is also conforming to Friedmans argumentation that acompanys sole objective is to improve its

profits, CSR activities are strongly examined upontheir expected financial outcome and competitive advantages may also base on social activities.Level 5 companies in contrast see social responsibility as elementary regardless of its financialconsequences. Profit making for those companies is a necessary condition, but not the solepurpose of their existence. Three reasons why companies should engage in CSR and which are used often are:1. It is the right thing to do and better for the world. CSR is a sufficient end in itself.2. Companies have an obligation to return benefits of society to society as they where initiallycaused by it. These benefits may be a stable business environment, enforcement of contracts or the existence of property rights which enables the company to operate and dobusiness.3. It improves business profitability in the long run and should thus be seen as strategicinvestment.Applying these aspects to Bayer, one would locate the company at level 4. Bayers primary goalis stated as to increase the company value and CSR activities are closely linked to corporategoals. This is exemplified by activities especially taking place in the neighbourhood of Bayer sites and plants. However, an alignment of all CSR activities with the CSR strategy is rare, asmany decisions are made locally and managers make decisions in a certain scope on thereown. Q2. Applying the information on Bayer Material Science CSR activities given in the caseand based on your own research, which dimensions of CSR and which categorieswould you identify? What are BMS Thais activities in these areas? CSR activities may be classified by content and geographic reach as shown in the table below.

Q3. Taking into account your results of BMS CSR activities in Thailand, how would youevaluate the potential costs and benefits of the CSR engagement?

This table presents a qualitative assessment of benefits and of costs within each contentdomain which might also result in a similar form during class discussion.

Table. 2 Costs and benefits of CSR

Benefits CostsEnvironment Less legal battles

Improved public image

Investment in environmentaldamage control

Costs of environmentprogrammes and activities

Community More willingness to accept newinvestments

Improved public image Requires continuous interactionwith community

Government More confidence in company Fewer legal battles, no newpotentially harmful legislation More favourable trading regime

More willingness to acceptexpansion or downsizing

Costs of adhering to newregulations will increase

Human Resources have to beallocated to liaison tasks

Implementation of specificreporting standards

Employees

Better HR policies lead toincreased motivation Good ethical conduct bysuperiors leads to improvedproductivity

More awareness of ethicalissues from focus sessions leadsto more confidence aboutemployees

Less labour relations disputes,less strikes Better working conditions

Good company CSR leads toeasier recruitment of top talents Reduced recruitment costs

Inclusion of ethics training

More intra-companycommunications

More effort on labour relations Will need to implement humanrights policies Increased training in ethics Focus group sessions andreporting

Suppliers Better quality inputs Less harmful effect on publicimage

Cost of inputs may increase in theshort term

Control costs incurred due toquality checks

C o n t e n t D o m a i n s

Customers

Move to ethical consumptioncaptured by company

Less disputes

Advertising can cite CSR

Enhanced reputation

Brand quality recognition

Costs of goods may increase inthe short term

Opportunity costs of reducedsales A quantitative evaluation is however not possible due to the lack of figures and the difficulties of measuring the outcome of CSR activities. Company representatives also admitted theimpossibility of an exact quantitative measurement. In certain areas like the efficient use of resources (decrease in energy consumption, waste volumes, emissions, wastewater loads),corporate social activities can be measured by increased efficiency and less consumption.Combined with an increase in production output, costs could be decreased. This would lead to abalance between ecology and economy. Some success stories of BMS may illustrate thesebenefits: BMS eco check: Minimum requirements for products are set. Each product is measured ondifferent aspects as economy, health, environment, life cycle, technology and public value. Thisgives the basis for continuous improvement of products according to most of the socialresponsibility dimensions. This leads to benefits as enhanced reputation and brand qualityrecognition. Furthermore, it reduces production costs. Bayer/BMS Young Environmental Envoy: As described in the case, this programme incollaboration with UNEP gives students from 12 countries (Thailand, Singapore, Philippines,India, China, Brazil, Colombia and others) to actively work on environmental issues and thusincrease the protection of environment. This clearly improves public image and a higher awareness of BMS as a leading, responsible employer. Q4. Develop a CSR strategy for BMS in China based on your previous research.

This question depends on the judgement and priorities by each individual and results may varywidely, depending on class discussion and students previous experience. Here is a process of CSR strategy development and some examples to show possible outcomes.First students should recapitulate the reasons why BMS is looking to apply CSR in China (seeQuestion 1 above). This should be done under BMS vision of offering useful and life-improvingproducts. Growth with sustainability is of special importance. Part of this sustainable growthstrategy is CSR. Therefore possible goals for BMS CSR in China could be: Ethical Interest of the manager to contribute to his environment. Applying international standards for health, safety and general working conditions to China. Become the employer of first choice for highly qualified staff, retain highly skilled employees. Implementing measures that make a significant difference to the companys stakeholdersand that are easy to communicate on a large scale in order to achieve some or all of thepoints named above. Seeking to establish good relations with the government of the Peoples Republic. Setting standards for the chemical industry that local competitors will be expected to live upto thus decreasing generic cost advantage of Chinese competitors in the medium andlong term. Those goals are part of the global vision of being a responsible company also in China.Derived from the goals, BMS strategy is focusing on local and national measures in Chinathat fit the company, its products and its culture.The Chinese market is highly attractive to BMS. The company has a very strong interest inlaunching initiatives that raise a lot of public attention, and fulfil as many as possible of the goalsnamed above. The students discussing this case might come up with a very wide range of proposed measures , that might, but need not, include the following features, which haveregional, national and multinational reach and cover mainly all content domains, as described inQuestion 2 above:

 Environmental Programmes HR-Focused Programmes Society-Focused Programmes Public-Private Partnerships. 5. What Actually Happened When our case team interviewed BMS executive managers about the criteria to select and prioritise CSR measures, we were surprised to learn that in most cases, the idea of launching acertain measure came from the individual initiative of an employee working at a certain site.The process of selecting and funding appropriate measures from among those proposed ideaswas often driven by gutfeeling. Our interview counterparts stressed that the primary interestof BMS CSR activities is simply to contribute to society and to improve the quality of lifewhere needed most. This motivation has always been a main driver behind Bayers CSR activities and has become a part of the companys `genealogy.Several CSR activities have already been launched in China which are discussed in detail in thefollowing text. 5.1 Mercy Corps Micro finance project Bayer China has recently entered a partnership with Mercy Corps, the China Foundation for Poverty Alleviation (CFPA) and corporate sponsors to fund a rural community development project in Fujian province. The money contributed by the corporate sponsors will be used asseed money for loans, or to fund the core operations to help implement the programme over thenext four years. The project will target Fuan county households, including fishing householdsand farming households in the geographically disadvantaged mountain areas. Furthermore,women will be especially encouraged to participate, mainly through support for cottageindustries and small family businesses. Bayer is joined in sponsoring the programme byMotorola, Freshfields and SinoGolf. The CFPA, registered with the Ministry of Civil Affairs was founded in 1989 with the purpose of alleviating poverty in rural communities in China.Mercy Corps is a humanitarian organisation that operates in more than 25 countries, withextensive experience in lending activities worldwide. 5.2 Bayer Young Environmental Envoy/Media awards As a partner of the United Nations Environmental Programme (UNEP) in the Asia-PacificRegion, Bayer initiated the Young Environmental Envoy (BYEE) programme in 2001. Bayer China supports the initiative, especially the Bayer Environmental Awards Media (BEAM).The award aims to encourage, excite and inspire young journalists (25 years and under) to cover environmental/sustainable living

issues, and to increase awareness and coverage of the Eco-Innovators Youth Forum helped by UNEP. The overall finalists from China attended theinaugural BEAM ceremony in Sydney, Australia. 5.3 Shanghai Petrochemical Academy Partnership Bayer China has recently begun cooperation with the Shanghai Petrochemical Academy (SPA),a secondary vocational and technical school in Jinshan, Shanghai. Bayer has allocated onemillion euros for the establishment of a state-of-the-art laboratory, a pilot plant and a pipeassembly shop, facilities that will help train the chemical technicians of the future. Theagreement is a great example of how investing in the community can pay dividends in thefuture, and can be beneficial for all participants. Bayer provides necessary funding, as well asknow-how to improve the standard of education in the region. In return, the SPA produces better trained chemical engineers that Bayer needs to staff its nearby polymers production site inCaojing. 5.4 Sponsorship of Special Olympics Schools The Special Olympics Programme is actively involved in promoting special athletes throughoutChina. Bayer currently sponsors two schools one in Beijing and one in Shanghai that sendathletes to Special Olympics competitions. Special Olympics is an international organisationdedicated to empowering individuals with mental retardation. The organisation currently serves1 million persons in more than 200 programmes in more than 150 countries. That number isexpected to double by 2005, with a special focus on China. 5.5 Care & Share Orphan Outreach Programme Bayer Corporate Communications, facilitated by Operation Blessing China, has initiated Care& Share, a programme through which Bayer employees reach out to disadvantaged children inthe communities they workin. Members of the Bayer China team are given time off to visit localorphanages, bringing presents, treats and above all some time and love to spend with childrenwho are often, above all, in need of some attention. Care & Share is in its early stages, but wesincerely hope it will become a great success! 5.6 Investment in education Over the past years, Bayer in China has invested time and money in third-level education in thesciences in China. CAS/Bayer cooperation: Bayer is providing substantial funding over a fiveyear period to support talented young scientists at the Chinese Academy of Science, andexchange information in areas of mutual interest. BUCT Scholarships: For the last five years,Bayer has provided scholarships to 20 students of the Beijing University of ChemicalTechnology, to support them during their studies. 5.7 Raising funds for Orphans Bayer China was a primary sponsor and helped facilitate a charity dinner to raise money for orphans in China. The evening, organised by the EU-China Junior Managers TrainingProgramme and Operation Blessing China, rose more than RMB 170,000 to help a variety of causes. These included the improvement of facilities in two orphanages outside of Beijing, andfunds for education and

medical assistance for orphans in Beijing and Gansu Province. Thedinner is set to become a yearly event, raising even more money this year. Bayer will again be a part of the night.

CASE TEACHING NOTES Ryanair the Low-Fares Airline Eleanor OHiggins 1. Introduction Ryanair was the first budget airline in Europe, modelled after the successful US carrier,Southwest Airlines. The case offers students the opportunity to evaluate the strategy of Ryanair against the backdrop of the European airline industry and the burgeoning budget sector, in theface of the challenges facing the industry as a whole and Ryanair in particular. The case alsooffers the opportunity to evaluate Ryanairs bid for fellow Irish carrier, Aer Lingus. Businessstudents at all levels enjoy this case and relate to it, since air travel is an activity virtuallyeveryone has experienced and we all have war stories to tell about the various airlines withwhich we have travelled. The colourful personality of Ryanairs CEO, Michael OLeary is anadditional point of interest in the case.The Ryanair case has been used successfully with students from Ireland and other Europeancountries, as well as with North American and Asian students. The case would suit all levels of business students, from a capstone undergraduate course on strategy, to post-work experienceMBA and executive education programme participants. It has been used effectively with allthese types of groups.The case consists of an overview of the Ryanair bid for Aer Lingus; a history of Ryanair and its principal characters; an outline of Ryanairs operations as a budget airline and its robust performance; a description of the challenges besetting Ryanair in 2007; a profile of Michael OLeary, Ryanairs ebullient CEO; a website supplement describing in detail, Ryanairs battleground, the European airlineindustry, as the competitive landscape continues to change.

2. Position of the Case The case is a comprehensive one and would be well placed towards the end of a course onstrategic management. At this stage, students will have learnt something of the economic,organisational and human context of strategy. The case concentrates on how to analyse industryenvironments, and internal resources/capabilities of companies and their connection to theconcept of sustainable competitive advantage. In sum, the Ryanair case illuminates how a